RBI imposed penalty on the Jalore Nagrik Sahakari Bank Limited, Jalore

Case Brief

The Reserve Bank of India imposed a monetary penalty on Jalore Nagrik Sahakari Bank Limited, Jalore under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank violated its instructions/guidelines by breaching prudential interbank single and gross exposure limits and by giving donations exceeding the prescribed limit. After issuing a show-cause notice, considering the bank's written reply and personal submission, RBI concluded that the violations were substantiated and warranted penalty.